G4S (Botswana) Limited slipped into a loss in the first half of 2026 as weaker revenue and higher direct operating costs squeezed the security services company’s margins.
The Botswana Stock Exchange-listed group reported a P1.6 million loss before tax for the six months ended 30 June 2026, compared with a P3.2 million profit in the corresponding period last year. The company’s loss after tax stood at P1.6 million, against a P3.0 million profit a year earlier.
Revenue declined 5.1% to P111.5 million, from P117.6 million in the first half of 2025. G4S attributed the decline to stagnant growth in its core operating units and pressure across key service lines.
The biggest decline came from its Cash Solutions business, where revenue fell 12.9% to P28.3 million, from P32.5 million. The company said the decline was driven by the conclusion of certain contracts and lower transaction volumes across cash-processing channels.
Electronic Security Solutions revenue fell a more modest 2.9% to P21.3 million, from P21.9 million, which G4S attributed to portfolio streamlining and the termination of accounts because of non-payment.
Its Guarding Services business, however, held revenue steady at P58.7 million, with the company pointing to the retention of key commercial accounts.
The deterioration in revenue was accompanied by a sharp contraction in gross profit. Gross profit fell 36.6% to P18.0 million, from P28.4 million in the prior-year period, while the gross profit margin declined from 24.2% to 16.2%.
G4S said the margin pressure reflected weaker revenue across its primary service lines, which reduced fixed-cost absorption, alongside higher direct operating costs. Fuel price volatility and increased repairs and maintenance costs associated with an ageing vehicle fleet were specifically cited as pressures on margins.
The company has responded by pursuing fleet optimisation, planned fleet replacements and direct-cost rationalisation.
Despite the weaker operating performance, G4S reduced administrative expenses by 6.4% to P19.9 million, from P21.2 million. Net impairment losses on financial assets also declined by 61.1% to P1.3 million, compared with P3.5 million in the first half of 2025, which the company attributed to improved collection strategies.
The weaker earnings also translated into a loss attributable to shareholders of P1.6 million, compared with a P2.7 million profit in the prior-year period. Basic and diluted loss per share was 2.02 thebe, against earnings of 3.37 thebe a year earlier.
G4S ended June with P15.2 million in cash and cash equivalents, down from P16.4 million at the end of December 2025. Net cash generated from operating activities was P1.1 million during the six months, while P1.7 million was used to service lease liabilities and interest payments.
The company’s balance sheet remained supported by P74.6 million in total equity, although this was down from P76.1 million at the end of 2025. Total liabilities increased to P60.7 million from P53.8 million over the same period.
Looking ahead, management said its turnaround strategy will focus on growing revenue across its cash-generating units, reducing non-essential operating costs and strengthening working capital through improved debt collection and cash-flow management.